Property Insurance Coverage Quiz: Principles and Concepts

What is the principle of insurance that requires the insured to disclose all relevant facts that would increase the premium amount?

In insurance, what is the term used to describe the insured's monetary interest in the insured property?

Which principle of insurance involves the insurer compensating the insured for any possible damage or loss?

If there are more than one insurers, what can the insurer do according to the principle of Contribution?

What is the duty of the insured in relation to loss minimization?

What is the consequence of under insuring your property according to the text?

What happens if the premium is not paid within 60 days from the inception date of the cover?

Which type of home insurance covers loss or damage due to perils like impact with any of the buildings by any road vehicle or animals not belonging to the insured?

Which type of home insurance provides coverage for personal property and loss of use?

What does the term 'average condition' refer to in home insurance?

Principles of Insurance

The principle of Utmost Good Faith requires the insured to disclose all relevant facts that would increase the premium amount.

Types of Home Insurance

Home insurance that covers loss or damage due to perils like impact with any of the buildings by any road vehicle or animals not belonging to the insured is known as Special Perils Insurance.

Insurable Interest

Insurable Interest refers to the insured's monetary interest in the insured property.

Principle of Indemnity

The principle of Indemnity involves the insurer compensating the insured for any possible damage or loss.

Principle of Contribution

If there are more than one insurers, the principle of Contribution states that the insurer can call upon other insurers to share the loss.

Duty of the Insured

The duty of the insured in relation to loss minimization is to take all reasonable steps to minimize the loss.

Consequences of Underinsurance

If a property is underinsured, the consequence is that the insured will bear the shortfall.

Premium Payment

If the premium is not paid within 60 days from the inception date of the cover, the policy will lapse.

Types of Home Insurance

Contents Insurance provides coverage for personal property and loss of use.

Average Condition

The term 'average condition' refers to the assumption that the property is in a reasonable state of maintenance and repair at the time of the loss.

Test your knowledge of property insurance principles and coverage including dwelling, other structures, personal property, loss of use, and liability coverage such as personal liability and medical payments coverage. Explore concepts like utmost good faith and insurable interest.